TransAlta Renewables is investing $540m in three TransAlta facilities totaling 611MW in Ontario and Quebec.
The plants are the Sarnia Cogeneration Plant, Le Nordais wind farm and Ragged Chute hydro facility.
TransAlta Renewables’ investment will consist of the acquisition of securities that will track the net distributable profits of the portfolio.
As part of the transaction, TransAlta Renewables will issue $175m in common shares to TransAlta and $215m in convertible unsecured subordinated debentures.
In order to finance the cash portion of the investment, TransAlta Renewables has entered into a $150m bought deal offering co-led by CIBC Capital Markets and TD Securities, as joint bookrunners, for the sale of 15,385,000 subscription receipts at a price of $9.75 per receipt.
Following shareholder approval, each holder of a receipt will automatically receive one common share in the capital of the company for each receipt held.
TransAlta Renewables expects the offering to close on or about 2 December, while the transaction will close in January.
TransAlta Renewables is to sell Alberta Investment Management Corporation $200m of its common shares.
The AIMCo Investment is scheduled to close on or about 26 November.
Image: TransAlta’s Wolfe Island wind farm in Ontario (TransAlta)
